Highlights

  • The SYD1 88MW expansion project is fully approved, with the first 20MW expected to complete in Q2 CY2026.
  • The company reported 1H FY26 underlying revenue of AUD 108 million and underlying EBITDA of AUD 57 million, with DPS of 6.0 cents per security.

DigiCo Infrastructure REIT (ASX:DGT) has been rated a Buy by EODHD/Others consensus, with a target price of AUD 3.53, reflecting investor confidence in its expanding data centre platform. DGT’s portfolio, consisting of 13 data centres across Australia and North America, demonstrates both operational stability and development upside.

The company had released its 1H FY26 financial results, highlighting growth in contracted capacity, operational efficiency, and expansion projects.

Contract Wins and Capacity Expansion Drive Momentum

DigiCo’s Australian operations recorded 22MW in new contract wins, including 2MW in Queensland, bringing SYD1’s existing capacity to 100% contracted. The accelerated SYD1 expansion project is expected to deliver a 15% yield on cost and increase Net Asset Value (NAV) by approximately AUD 1.50 per security.

The CHI1 Phase 3 development is on track for completion in Q2 CY2026, highlighting the company’s ability to deliver on strategic growth milestones.

Financial Performance Highlights

DGT reported following financial metrics for the half-year:

  • Underlying Revenue: AUD 108 million (+12% vs pcp)
  • Underlying EBITDA: AUD 57 million (+15% vs pcp)
  • DPS: 6.0 cents per security (in line with guidance)
  • Gearing: 35.8% (low end of 35–45% target)
  • Available liquidity: AUD 658 million (cash + undrawn debt)

The company expects FY26 EBITDA of AUD 125 million, at the top end of guidance, and maintains a 12.0 cents per security dividend policy aligned with 90–100% of FFO.

Strategic Focus and Investor Value

DigiCo’s management is focused on closing the discount to NAV by accelerating high-return projects and optimising funding strategies. The company aims to partner and recycle capital where necessary, maintaining sustainable gearing while funding the highly accretive SYD1 expansion.

CEO Michael Juniper noted that DGT is entering the second half of FY26 with positive momentum and growth clarity, targeting both earnings growth and shareholder value enhancement.

DigiCo Infrastructure presents an infrastructure investment opportunity, supported by growing contracted IT capacity, development pipeline execution, and solid financial positioning. With EODHD/Others consensus rating at Buy and a target price of AUD 3.53, investors may view DGT as a strategic play in the expanding data centre sector, particularly in Australia and North America.

FAQ

Is DGT a Buy according to analysts?

Yes, EODHD/Others consensus rates DGT as a Buy with a target price of AUD 3.53.

What is driving DGT’s growth?

Growth is driven by contract wins, fully contracted existing capacity at SYD1, and accelerated expansion projects, alongside operational efficiency improvements.

How is DGT’s financial health?

DGT has underlying EBITDA of AUD 57 million, gearing of 35.8%, and AUD 658 million liquidity, supporting near-term growth and development initiatives.